DETROIT, MI -- Michael Winans, Jr. was sentenced Wednesday to 14 years in federal prison for operating an $8 million Ponzi scheme, according to the U.S. Attorney's office.

Winans, 30, of Jessup, Md., pleaded guilty in October 2012 to defrauding investors through the Winans Foundation Trust.

Prosecutors said victims believed they were investing in crude oil bonds in
Saudi Arabia and that Winans used his connection to Detroit's famed gospel music family to recruit "shareholders."

U.S. District Judge Sean Cox ordered Winans to pay over 1,000 victims $4.7 million in restitution and a $175,000 fine.

He was accused of initially recruiting 11 investors, who in turn recruited hundreds more from multiple states, collecting more than $8 million.

"All of these victims were led to believe they were investing in Saudi Arabian crude oil bonds that Winans well knew did not exist," U.S. Attorney Barbara McQuade's office announced in a news release.

Winans took some of the money for himself and distributed some of the later victims’ money to the earlier investors, claiming the payments were returns on their investments.

"Investor fraud schemes like this one are just a fancy way to steal other people's
money," said McQuade. "Anyone who robs citizens of their hard-earned savings will be brought to justice."

"We are pleased that the many victims of Michael Winans can rest easier tonight
knowing that he has been convicted and will be spending his time in federal prison,"
said Wayne County Prosecutor Kym Worthy.

Victims in the scheme can report their information to authorities by calling 1-888-702-0553 or via e-mail: usamie.victimservices@usdoj.gov.